Cryptocurrency trading platform Hyperliquid is facing intense scrutiny after blockchain analysts identified multiple high-leverage trades on Bitcoin and Ethereum that have generated unusual profits, raising concerns about potential money laundering activities.
The platform, whose native token HYPE has fallen nearly 8% since Wednesday, has become the focus of multiple analyst reports documenting a pattern of large and frequent leveraged trades executed with suspicious precision. These trades have prompted investigations into both the source of funds and the identities behind these transactions.
Blockchain analytics firm Spotonchain first flagged the suspicious activity, reporting that a single trader deposited $5.22 million onto the Hyperliquid platform to open highly leveraged positions. According to their analysis, the trader placed an Ethereum long position at 50x leverage with an entry price of $1,884.4 and a liquidation point at $1,838.2. The same trader also opened a Bitcoin long position at 20x leverage, entering at $82,003.9 with a liquidation price set at $61,182.
"Notably, in the past 2 days, this whale closed two quick ETH long positions with a 100% win rate, netting $2.2 million in profit," Spotonchain revealed in their report.
The perfect timing and consistent profitability of these transactions have led several analysts to speculate that these activities might represent more than lucky market speculation. Crypto market analyst AB Kuai Dong suggested a possible connection to North Korean hackers, noting that similar high-frequency trading strategies have previously been linked to money laundering operations by state-sponsored cybercriminals.
"I am very curious about these large anonymous orders of Hyperliquid. Combined with the previous news about North Korean hackers testing Hyper trading, is it possible that these large and frequent 50-fold openings are all gray market funds laundering money?" the analyst questioned.
Supporting this theory, an analyst known as Ai on X referenced previous research identifying three addresses that had generated $2.53 million in profit through GMX high-leverage trades earlier this month. These addresses were reportedly linked to gambling platforms including Roobet and AlphaPo, and had interacted with ChangeNOW, an exchange frequently utilized by hackers to obscure fund trails.
"Insider or ultimate gambler? It is indeed more like the latter," the analyst concluded after reviewing the transaction patterns.
Further evidence came from crypto analyst Adolyb, who cited research from Coinbase's Conor Grogan suggesting an even more direct connection to illicit activities. "Coinbase people found out that it is a phishing address with 4 layers of jumps + gambling players," Adolyb stated.
Grogan's analysis indicated that the wallet behind some of the suspicious Hyperliquid trades had received funds from phishing attacks. He described the account as a "Roobet whale," implying regular engagement in high-stakes gambling on platforms historically associated with money laundering operations.
The Coinbase researcher also noted that this trader had previously liquidated long positions immediately before significant market events, suggesting their success was not necessarily based on insider knowledge but rather represented gambling with stolen funds.
These findings have intensified concerns about high-leverage trading platforms being exploited for illicit financial activities. While leverage trading legitimately allows investors to amplify their positions, it also provides criminals with mechanisms to move and disguise large sums of money quickly through the financial system.
The anonymity features of decentralized and offshore exchanges further complicate regulatory oversight of such transactions. Industry experts expect that regulators and blockchain forensic firms will increase their scrutiny of similar activities amid growing evidence linking Hyperliquid's high-leverage trades to potentially illicit sources.
As of Wednesday, BeInCrypto data showed Hyperliquid's token trading at $13.35, down approximately 8% since the opening of the trading session, as market participants responded to the emerging controversy.